Islamabad, (Parliament Times) : Pakistan’s mineral sector continues to suffer from systemic corruption, nepotism, and bureaucratic malpractice, as yet another controversy has surfaced involving alleged irregularities in the awarding of a mining contract under the Pakistan Minerals Development Corporation (PMDC). The latest incident, reported from Chakwal’s Makhrachh region, centres around Mine No. 17, where sources allege that procedural violations were committed to favour a particular company while disregarding the rightful bidder.
According to official documents and individuals close to the matter, PMDC floated a tender on February 7, 2025, inviting bids for the lease of Mine No. 17. Two companies submitted bids — Nexus and MOS. While MOS fulfilled all legal and financial requirements and offered the lowest bid, Nexus failed to provide critical documentation, including sales tax registration, and was therefore disqualified during the initial evaluation.
Despite this, the Project Manager stationed in Chakwal allegedly colluded with representatives of Nexus to covertly regularize their documentation after the official deadline. On May 25, the tender was unlawfully awarded to Nexus — the company initially disqualified — while the originally successful bidder, MOS, was neither notified of the development nor given an opportunity to file an appeal or respond.
Sources claim that the entire process was manipulated in exchange for a bribe of Rs. 1 million. A formal complaint, supported by sworn testimony on stamp paper, has been submitted to the Federal Ombudsman by a whistleblower, implicating the Project Manager and detailing the alleged bribery.
MOS, the aggrieved company, maintains that it had previously held the lease for Mine No. 17 and had invested over Rs. 7 million in developing salt extraction infrastructure on the site. The company insists that it was eligible for lease extension under existing policies, and being abruptly ousted without justification amounts to not only a breach of law but also a devastating blow to investor confidence in the sector.
Industry insiders state this is not an isolated case. Several mining companies across Punjab and other provinces have experienced similar treatment in recent years — where substantial investments were made, only for the projects to be handed over to politically connected or favoured companies through backdoor deals involving PMDC officials and project managers.
The Punjab Mines and Minerals Association issued a strong condemnation of the alleged misconduct, levelling serious accusations against both the Project Manager in Chakwal and senior management at PMDC. In a statement, the association claimed that a “tender mafia” has taken root within the minerals sector, thriving on kickbacks and bribery, while law-abiding and legitimate investors are routinely sidelined.
The Association has called on the Prime Minister of Pakistan, the Federal Minister for Energy, and the Chief Minister of Punjab to order an independent commission of inquiry to investigate all irregularities in PMDC’s operations. It has demanded strict legal action against those found guilty of misconduct, and comprehensive reforms to restore transparency and credibility in the tendering process. Multiple attempts were made to obtain PMDC’s official stance on the matter. However, the corporation did not respond to requests for comment.